State Street (STT) AI Stock Analysis

• Market Cap: $31.61B
• Dividend Yield: 2.73%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.06
• Revenue Growth: 11.66%
• EPS Growth: 67.88%
• Country: US
• Employees: 52,711
• Sector: Financial
• Sector Strength: 71
• Industry: Asset Management
• EPS (TTM): 2.53
• Shares Outstanding: 283,695,340
• 10 Day Avg. Volume: 1,548,880
• 30 Day Avg. Volume: 2,060,388
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 5.27
• Enterprise Value/Ebitda: 16.60
• 1Y Price Target: $114.39
• Price Target Upside: 0.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: $111.00 ▼(-2.29% Downside)

State Street's robust earnings call results, demonstrating strong business momentum and strategic wins, are the most significant positive factor. Financial performance is solid but marred by high debt and negative cash flows. Valuation is reasonable, and technical indicators provide a mixed outlook.

Positive Factors

Operating Leverage

State Street delivered a 5th straight quarter of year-over-year positive operating leverage, showing efficiency in managing expenses.

Organic Growth

Strong organic growth is showing through, with record institutional net inflows in Investment Management.

Negative Factors

Asset Management

AUM net outflows were driven mainly by a singular client transition, suggesting some instability in asset management.

Net Interest Income

Unchanged NII guide of 'roughly flat y/y' disappointed, leading to a lowered NII forecast.

State Street Business Overview & Revenue Model

Company Description

State Street Corporation (STT) is a leading financial services and bank holding company headquartered in Boston, Massachusetts. Established in 1792, State Street specializes in investment servicing, investment management, and related financial services for institutional investors. The company operates through various segments, including Investment Servicing, Investment Management, and State Street Global Advisors, providing a wide range of solutions such as custody services, fund accounting, performance measurement, and risk management.

How the Company Makes Money

State Street generates revenue primarily through its Investment Servicing and Investment Management segments. The Investment Servicing segment earns income by providing asset servicing solutions, including custody, accounting, and administration services, charging fees based on the assets under management (AUM) and transaction volumes. The Investment Management segment, particularly through State Street Global Advisors, derives revenue from investment management fees charged on the AUM of its clients, which include pension funds, insurance companies, and sovereign wealth funds. Additionally, State Street benefits from performance fees and client service fees, as well as fees from ETFs (Exchange-Traded Funds) and other investment products. Strategic partnerships with technology providers and financial institutions enhance its service offerings and operational efficiency, further contributing to its revenue streams.

State Street Financial Statement Overview

Summary

State Street exhibits strong profitability and efficient operations with high profit margins. However, high debt levels and negative cash flows pose significant risks that need to be addressed for long-term sustainability.

Income Statement

State Street's income statement shows a solid gross profit margin of 99.2% for TTM, indicating efficient cost management. The net profit margin has improved to 22% in the TTM from 20.8% in 2024, reflecting enhanced profitability. Revenue growth is modest with a 0.9% increase in the TTM period. However, EBIT margin at 25.4% is strong, and there's a notable recovery from the negative EBIT recorded in 2024.

Balance Sheet

The balance sheet reflects a stable equity position with an improving equity ratio of 7.2% in the TTM. The debt-to-equity ratio is relatively high at 0.93, posing a potential risk, although it has decreased from 1.31 in 2024. Return on equity is favorable at 10.7% for the TTM, indicating solid returns for shareholders.

Cash Flow

State Street's cash flow situation is challenging with a negative free cash flow of $6.54 billion in the TTM, although there is slight improvement from $14.14 billion negative in 2024. Operating cash flow is negative, suggesting cash generation issues. The operating cash flow to net income ratio is also unfavorable, indicating reliance on non-operational cash sources.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.97B	18.37B	13.67B	12.03B	12.07B
Gross Profit	12.84B	11.90B	12.11B	12.06B	11.61B
EBITDA	4.00B	3.20B	4.48B	4.73B	4.41B
Net Income	2.69B	1.94B	2.77B	2.69B	2.42B
Balance Sheet
Total Assets	353.24B	297.26B	301.45B	314.62B	314.71B
Cash, Cash Equivalents and Short-Term Investments	62.04B	48.57B	44.55B	183.39B	179.47B
Total Debt	33.11B	21.50B	17.09B	13.60B	17.79B
Total Liabilities	327.91B	273.46B	276.26B	287.26B	288.51B
Stockholders Equity	25.33B	23.80B	25.19B	27.36B	26.20B
Cash Flow
Free Cash Flow	-14.14B	-126.00M	11.22B	-7.52B	2.97B
Operating Cash Flow	-13.21B	690.00M	11.95B	-6.71B	3.53B
Investing Cash Flow	-39.48B	12.74B	6.82B	-2.17B	-65.53B
Financing Cash Flow	51.79B	-13.35B	-18.43B	9.05B	62.17B

State Street Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 113.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STT, the sentiment is Positive. The current price of 113.6 is above the 20-day moving average (MA) of 110.89, above the 50-day MA of 106.07, and above the 200-day MA of 95.99, indicating a bullish trend. The MACD of 1.49 indicates Positive momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STT.

State Street Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BK	78 Outperform	$73.07B	15.82	11.75%	1.88%	7.41%	51.70%
TROW	78 Outperform	$23.65B	12.04	19.39%	4.60%	4.43%	5.55%
BEN	75 Outperform	$13.34B	49.26	2.16%	4.96%	4.72%	-67.85%
SEIC	74 Outperform	$10.98B	16.68	30.06%	1.10%	10.55%	40.74%
NTRS	70 Outperform	$24.36B	14.97	13.47%	2.33%	3.44%	16.76%
STT	68 Neutral	$31.61B	12.49	10.94%	2.73%	11.66%	67.88%
Sector *	62 Neutral	AU$10.42B	9.87	13.11%	4.72%	32.06%	21.38%

State Street Corporate Events

State Street Reports Strong Q2 2025 Financial Results

On July 15, 2025, State Street reported its second-quarter 2025 financial results, highlighting a record $49 trillion in assets under custody and administration and $5 trillion in assets under management. The company achieved a 6% increase in diluted earnings per share and an 11% increase in total fee revenue compared to the previous year, demonstrating strong financial performance and strategic execution amid market volatility. The results underscore State Street’s robust operational foundation and its focus on delivering long-term growth and value for shareholders.

The most recent analyst rating on (STT) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.

State Street Shareholders Vote on Key Matters

At the Annual Meeting on May 14, 2025, State Street shareholders voted on several key matters, including the election of eleven directors and the approval of an advisory proposal on executive compensation. The meeting also saw the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025. However, two shareholder proposals, one for a policy requiring an independent board chair in the next CEO transition and another for a report on worker transition and community fairness in its finance strategy, were not approved.

The most recent analyst rating on (STT) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on State Street stock, see the STT Stock Forecast page.